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Marketing
BMEGT20MW01
Department of Management and Corporate
Economics, building Q, room B 303b
email: [email protected]
Gyorgyi Dano
Lecturer: Gyorgyi Dano
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• The Marketing Information System
• Big Data
• Marketing Research
• Secondary and Primary Data
• Research Methods
• Qualitative and Quantitative Research
• Sampling Techniques
• Research Instruments
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Marketing 03
https://www.youtube.com/watch?v=Zzh06zPjkTs
Gyorgyi Dano
Wal-Mart Failure in Germany and
South Korea
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Beyond the ambience, Wal-Mart’s shoes-to-sausage
product line does not suit the shopping habits of many
non-American shoppers. They prefer daily outings to a
variety of local stores that specialize in groceries, drugs
or household goods, rather than shopping once a week at
Wal-Mart.
In South Korea, Wal-Mart’s stores originally had taller
racks than those of local rivals, forcing shoppers to use
ladders or stretch for items on high shelves.
http://www.nytimes.com/2006/08/02/business/worldbusiness/02walmart.html
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In South Korea, Wal-Mart had only 16 stores. Many
Koreans have never heard of Wal-Mart. In Seoul, a
sprawling area of 10 million, there is only a single store.
The company initially installed American executives, who
had little feel for what German consumers wanted.
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In Germany, Wal-Mart required sales clerks to smile at
customers — a practice that some male shoppers
interpreted as flirting. People found these things strange;
Germans just don’t behave that way.
They tried to sell packaged meat when Germans like to
buy meat from the butcher.
http://www.nytimes.com/2006/08/02/business/worldbusiness/02walmart.html
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Wal-Mart never established comfortable relations with
its German labor unions. They didn’t understand that in
Germany, companies and unions are closely connected.
New Coke
https://www.youtube.com/watch?v=QkfFdQ1yaqs
http://www.coca-colacompany.com/stories/coke-lorenew-coke/
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Customer Insights
Difficult to obtain
• Not obvious
• Customer’s unsure of their behavior
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Fresh understandings of customers and
the marketplace derived from marketing
information that become the basis for
creating customer value and relationships.
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Marketing information system (MIS) refers
to the people and procedures dedicated
to assessing information needs, developing
the needed information, and helping
decision makers to use the information to
generate and validate actionable customer
and market insights.
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Marketing Information Systems (MIS)
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Marketing Information Systems (MIS)
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Marketing Information Systems (MIS)
Marketing intelligence
Marketing research
Competitive Marketing Intelligence: is the systematic
collection and analysis of publicly available information
about consumers, competitors, and developments in the
marketing environment.
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Gyorgyi Dano
Internal data
Internal databases:
are collections of
consumer and market
information obtained
from data sources
within the company
network.
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Big Data
Target’s statistician identified 25 products that when purchased together indicate a women is
likely pregnant. The value of this information was that Target could send coupons to the pregnant
woman. Plugged into Target's customer tracking technology, the formula was a beast. Once it
even exposed a teen girl's pregnancy:
[A] man walked into a Target outside Minneapolis and demanded to see the manager. He was
clutching coupons that had been sent to his daughter, and he was angry, according to an
employee who participated in the conversation.
“My daughter got this in the mail!” he said. “She’s still in high school, and you’re sending her
coupons for baby clothes and cribs? Are you trying to encourage her to get pregnant?”
The manager didn’t have any idea what the man was talking about. He looked at the mailer.
Sure enough, it was addressed to the man’s daughter and contained advertisements for
maternity clothing, nursery furniture and pictures of smiling infants. The manager apologized and
then called a few days later to apologize again. On the phone, though, the father was somewhat
abashed. “I had a talk with my daughter,” he said. “It turns out there’s been some activities in my
house I haven’t been completely aware of. She’s due in August. I owe you an apology.”
http://www.businessinsider.com/the-incredible-story-of-how-target-exposed-a-teen-girls-pregnancy-2012-2
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The Incredible Story Of How Target
Exposed A Teen Girl's Pregnancy
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https://www.youtube.com/watch?v=DS310JMdu2s
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Can Big Data Predict The Future?
Find out what your Facebook
Likes say about you! https://goo.gl/Y8yEUu
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http://applymagicsauce.com/demo_likes.html
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Apply Magic Sauce translates
individuals' digital footprints into
detailed psychological profiles.
https://www-01.ibm.com/software/data/bigdata/
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What is Marketing Research?
Marketing research is the systematic
design, collection, analysis, and reporting
of data relevant to a specific marketing
situation facing an organization.
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Marketing Research Process
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Exploratory research: Marketing research to
gather preliminary information that will help define
problems and suggest hypotheses.
Descriptive research: Marketing research to better
describe marketing problems, situations, or
markets, such as the market potential for a product
or the demographics and attitudes of consumers.
Causal research: Marketing research to test
hypotheses about cause-and-effect relationships.
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Research Objectives
Defining the Problem and
Research Objectives
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„Will offering an in-flight phone service
create enough incremental preference and
profit for American Airlines to justify its cost
against other possible investments
American Airlines might take?”
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Problem
Defining the Problem and
Research Objectives
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•What are the main reasons that airline passengers place phone
calls while flying?
• What kinds of passengers would be the most likely to make
calls?
• How many passengers are likely to make calls, given different
price levels?
• How important is phone service relative to improving other
factors such as food quality, baggage handling, etc.?
• How many extra passengers might choose American Airlines
because of this new service?
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Research objectives
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Developing the Research Plan
Management problem
Research objectives
How the results will help management decisions
Budget
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Information needed
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Secondary data
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Information that already exists
somewhere, having been collected for
another purpose.
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Secondary data
Lower cost
Relevant
Obtained quickly
Accurate
Cannot collect
otherwise
Current
Impartial
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Advantages
Disadvantages
- data may not be
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OECD Better Life Index
http://www.oecdbetterlifeindex.org
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http://goo.gl/Bc9jw4
Information collected
for the specific purpose
at hand.
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Primary data
Observation
observing relevant people, actions,
and situations
Survey
asking people questions about their
knowledge, attitudes, preferences,
and buying behavior
Experiment
selecting matched groups of subjects,
giving them different treatments,
controlling related factors, and
checking for differences in group
responses
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Research Approaches
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Qualitative vs. Quantitative
Research
Research questions
Quantitative
Qualitative
Blythe (2006:239)
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What?
When?
Where?
Why?
Who?
How?
How many?
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http://www.greenbookblog.org/wp-content/uploads/2013/09/esomar-spend-by-method.png
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Research methods
Personal interviewing that
involves inviting six to ten
people to gather for a few
hours with a trained
interviewer to talk about a
product, service, organization
or other topic. The interviewer
“focuses” the group discussion
on important issues.
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Qualitative: Focus groups
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https://www.youtube.com/watch?v=Pglroxm_Y4o
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Observation: Mystery Shopping
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Ethnographic research involves
sending trained observers to watch (and
interact with) consumers in their “natural
environments.”
Netnography research: observing
consumers in a natural context on the
internet and mobile space.
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Observation: Netnography
Real-time social media search and
analysis - socialmention.com
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https://goo.gl/pmdhaf
Budapest
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Zappos
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• Packaging research
• Shelf layouts
• Point-of-sale
Which items did they hover over and for
materials how long?
Which products did they ‘pick up’?
• etc.
https://www.youtube.com/watch?v=M
IJgrUXxbQA
http://www.playmr.com.au/
Which labels did they read?
How long did it take them to make a
purchase decision?
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3D virtual shopper research
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Telephon
e
Personal
Online
Flexibility
Quantity of data that can be
collected
Control of interviewer
effects
Control of sample
Poor
Good
Good
Fair
Excellent
Excellent
Good
Good
Excellent Fair
Poor
Fair
Fair
Excellent
Good
Excellent
Speed of data collection
Poor
Excellent
Good
Excellent
Response rate
Poor
Poor
Good
Good
Cost
Good
Fair
Poor
Excellent
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Mail
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Contact Methods
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Sample: A segment • Sampling unit
of the population
• Sample size
selected for
• Sampling
marketing research procedure
to represent the
population as a
whole.
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Sample
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Sample
Probability Sample
Simple random sample
Every member of the population has a known and equal chance
of selection
Stratified random sample
The population is divided into mutually exclusive groups and
random samples are drawn from each group
Cluster (area) sample
The population is divided into mutually exclusive groups and the
researcher draws a sample
Convenience sample
The research selects the easiest population members
Judgment sample
The researcher uses their judgment to select population
members
Quota sample
The researcher finds and interviews a prescribed number of
people in each of several categories
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Nonprobability Sample
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The Literary
Digest correctly
predicted the outcome
of the previous five
presidential elections
(1920, 1924, 1928
and 1932).
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The 1936 Literary Digest Poll
The 1936 Literary Digest Poll
Great Depression
Franklin Roosevelt
Alf Landon
(Democrat)
(Republican)
“New Deal” programs
A.L. Sample
F.R.
Literary Digest
43%
57% > 2 million
Gallup
56%
44%
Actual results
62%
38%
3000
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The 1936 Literary Digest Poll
George Gallup:
3000/50000 people quota sampling
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The Literary Digest:
over 2 million people - most of
+ response
who were magazine readers, car rate was
owners or telephone customers
~24%
unrepresentative sample
http://www.surveysystem.com/sscalc.htm
http://goo.gl/VZK5rT
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Sample Size
Calculator
The confidence interval (also called margin of
error) is the plus-or-minus figure usually reported
in newspaper or television opinion poll results. For
example, if you use a confidence interval of 4 and
47% percent of your sample picks an answer you
can be "sure" that if you had asked the question of
the entire relevant population between 43% (47-4)
and 51% (47+4) would have picked that answer.
The confidence level tells you how sure you can
be. It is expressed as a percentage and
represents how often the true percentage of the
population who would pick an answer lies within
the confidence interval. The 95% confidence level
means you can be 95% certain; the 99%
confidence level means you can be 99% certain.
Most researchers use the 95% confidence level.
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Research Instruments
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• Questionnaires
• Mechanical devices
• Ensure questions are
free of bias
• Make questions simple
• Make questions specific
• Avoid jargon
• Avoid sophisticated
words
• Avoid ambiguous words
• Avoid negatives
• Avoid hypotheticals
• Avoid words that could be
misheard
• Use response bands
• Use mutually exclusive
categories
• Allow for “other” in fixed
response questions
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Questionnaire Do’s and Don’ts
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Question Types—Dichotomous
In arranging this trip, did you contact
American Airlines?
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 Yes  No
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Question Types—Multiple Choice
With whom are you traveling on this trip?
 No one
 Spouse
 Children only
 Business associates/friends/relatives
 An organized tour group
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 Spouse and children
Question Types—Likert Scale
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Indicate your level of agreement with the
following statement: Small airlines generally give
better service than large ones.
 Strongly disagree
 Neither agree nor disagree
 Agree
 Strongly agree
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 Disagree
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Question Types—Semantic Differential
American Airlines
Large ………………………………...…….Small
Modern……………………….…..Old-fashioned
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Experienced………………….….Inexperienced
Question Types—Importance Scale
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Airline food service is _____ to me.
 Extremely important
 Very important
 Not very important
 Not at all important
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 Somewhat important
Question Types—Rating Scale
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American Airlines’ food service is _____.
 Excellent
 Very good
 Fair
 Poor
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 Good
Question Types—
Intention to Buy Scale
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How likely are you to purchase tickets on American
Airlines if in-flight Internet access were available?
 Definitely buy
 Not sure
 Probably not buy
 Definitely not buy
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 Probably buy
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Question Types- Completely Unstructured
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What is your opinion of American Airlines?
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Question Types—Word Association
What is the first word that comes to your mind
when you hear the following?
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Travel ________________________
When I choose an airline, the most important
consideration in my decision is:
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________.
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Question Types—
Sentence Completion
“I flew American a few days ago. I noticed that
the exterior and interior of the plane had very
bright colors. This aroused in me the following
thoughts and feelings.” Now complete the story.
_______________________________________
_______________________________________
_______________________________________
_______________________________________.
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Question Types—Story Completion
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Question Types—Picture
(Empty Balloons)
https://www.google.com/intl/en/forms/about/?usp=mkt_formsdrive
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Online Questionnaire: Google
Drive - Forms
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Online Questionnaire:
SurveyGizmo
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https://www.surveygizmo.com/
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https://www.youtube.com/watch?v=VCf3L4pUpOg
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Mechanical devices: Eye tracking
Mechanical devices:
Neuromarketing
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https://www.youtube.com/watch?v=XTsVw-28NCw
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Decision-making process behind consumer
spending:
https://www.youtube.com/watch?v=rkE2s6UTsVs
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NeuroAdvertising analysis of
Mercedes TV ad
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Implementing the Research Plan
• Collecting the information
• Processing the information
• Analyzing the information
• Interpret findings
• Draw conclusions
• Report to management
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Interpreting and Reporting
Findings
நன்றி
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